Learn How to Read Your Merchant Statement

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Some merchant say that their merchant Services statements look so intimidating, they don’t even look at it. But that decision could be costing your business a lot of money. It’s to your benefit to look through your statement each month, not just to ensure that there are no errors but to see if there are places you could be saving on processing rates and fees.

Truthfully, the statement looks more complicated than it actually is. Each section is organized to inform you about one of two things: deposits from customer purchases you processed, and fees you are paying for merchant services. Money in and money out.

Your deposits are itemized individually, showing you the date of purchase, amount and what card was used. If you had a good sales month, this section may take up a few pages. You can compare this list to your own saved receipts or invoices. Or, if you’re using an online reporting system and keeping track throughout the month, you may want to skip this step.

There are several different types of fees, but they are organized in groups, so you should be able to understand them easily.

A discount rate is a percentage of each transaction amount that is deducted from that transaction. Your discount rate may be different for each transaction, based on the transaction type. You agreed to your discount rates when you signed up with your merchant services provider, and you can see the rates on your statement in the legend area. But you should definitely contact your merchant services provider if you don’t know or understand your discount rates.

A transaction fee is a flat fee, charged in cents, that is deducted from every card transaction. You also agreed to this fee when you signed up with your merchant services provider. Unlike discount rates, transaction fees are the same for every transaction.

Monthly fees are charged for various merchant services and vary depending on the type of processing your business performs, your pricing plan and other aspects of your merchant agreement. If you have any questions about these fees, you would be advised to contact your merchant services provider and ask for a full explanation.

Miscellaneous fees are charged on a non-regular basis for different reasons. There may be a new government regulatory fee that is charged annually or quarterly. Or there may be an industry fee for such things as PCI compliance. If you ever have questions about miscellaneous fees, your merchant services provider can answer them for you.

Once you’re clear on both the deposits and fees listed on your merchant statement, you’ll have a better understanding of how much your net profit is each month. And you may notice patterns in your transactions that indicate the need to make some changes to your program. It’s important for you to understand your statement and the numbers on it so you can make informed decisions about your business’ financial situation.

Your merchant services provider can be a strong advocate to help you work out the most cost-effective rates and fees. If you’re not getting that kind of service from your merchant services provider, you’ll want to consider making a switch to a provider that offers choices, support and all the information you need to help you save money and grow your business.

200,000

Richard Hari in your Colorado credit card customer service operation is one the best people I've ever dealt with in any type of business. I had a problem with credit card processing for my very, very small business. I was told I would get a call in two business days. Richard called in about 20 minutes. He was patient and took time to walk me through the process. Great job and a credit to TransFirst.

- Online Retailer | Bruceton Mills, WV

Two key things here. #1 – This program has saved me hundreds of dollars a year, and #2 – the service. The last time I called my question was answered in one simple phone call. We didn't take credit cards for a long time due to the expense ... I am so glad I took the time to listen when you came in because this is so much better.

- Restaurant Owner | Palm Bay, FL

TransFirst has done everything they said they would do, and they do it every month with service and savings. We are saving very big dollars each month, so we are very happy with the service.

- Police Benevolent Association | McDonough, GA

I'm writing to thank you for the superb customer support you've offered us in the setting up of our account. Your prompt replies to my questions, even through your illness, speaks very well of your organization and your own sense of responsibility. I would ask you to kindly forward this note to your supervisor, because I want him/her to appreciate your 'above and beyond' approach to your clients.

- Vision Care Provider | Windham, VT

I am extremely happy with TransFirst! The Transaction Express saves me hours a week with the ease of transactions and the up-to-date reporting. The service team is knowledgeable and eager to help. The best part, though, is the savings. Patrick made it so easy to switch merchant accounts. I wish I would have done it years ago!